Abstract
This paper focuses on some vital issues involed in specifying the number of variables to be included in agriculture's production function and on the functional form that the agricultural production function should assume in the context of a computable general equilibrium model. When land and intermediate inputs (seeds and fertilizers) as well as capital and labor are included, modeling the agricultural sector can best be done in a more disaggregated format than simple Cobb-Douglas or CES specifications. After examining the transcendental logarithmic production function, the paper proposes to adopt ‘nested’ CES specifications on the basis of empirically observed elasticities of substitution.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
